Ajay Kumar Mittal, J. - (1.) This appeal has been preferred by the revenue under Sec. 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 30.10.2012 (Annexure A -3) passed by the Income Tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 800/Chd/2012, for the assessment year 2009 -10, claiming the following substantial question of law: - Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was justified in upholding the decision of Ld. CIT(A) in deleting an addition of Rs. 81,90,000/ - made by the Assessing Officer by treating the Land Development Expenditure as Capital in nature?
(2.) Briefly stated, the facts necessary for adjudication of the instant appeal as narrated therein may be noticed. The assessee -Corporation has been set up by the Punjab Government to carry on the business of land development, contract farming, procurement of foodgrains, marketing and export etc. The assessee filed the original return on 29.9.2009 for the assessment year 2009 -10 declaring the income at Rs. 98,00,000/ - which was revised on 01.3.2011 at an income of Rs. 70,80,854/ -. The said return was processed under Sec. 143(1) of the Act and subsequently notice under Sec. 143(2) of the Act was issued on 26.8.2010. Notice under Sec. 142(1) of the Act along with questionnaire was also issued to the assessee. The Assessing Officer vide order dated 22.11.2012 (Annexure A -1) framed the assessment at an income of Rs. 1,52,70,854/ - by making additions of Rs. 81,90,000/ -. The said amount was disallowed considering the same as capital expenses incurred for the purposes of development of the land. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax(Appeals) [for brevity "the CIT(A)"]. The CIT(A) vide order dated 18.5.2012 (Annexure A -2) allowed the appeal and deleted the addition of Rs. 81,90,000/ - made by the Assessing Officer by following the order dated 16.11.2009 passed by his predecessor in the case of assessee itself for the assessment year 2006 -07. Against the order, Annexure A -2, the revenue filed an appeal before the Tribunal who vide order dated 30.10.2012 (Annexure A -3) upheld the order of the CIT(A) and dismissed the appeal following its own orders dated 9.7.2010 passed in ITA No. 202/Chd/2010 in the case of the assessee for the assessment year 2006 -07 and dated 30.11.2011 in ITA No. 754/Chd/2011 for the assessment year 2008 -09. Hence, the present appeal by the revenue.
(3.) We have heard learned counsel for the revenue.;